Ass 2 - Van Dang 360834[Type text[Type text Question 1 Analysis of the profitability of Nokian Tyres and Continental a Nokian Tyres Costs and expenses

Ass 2 - Van Dang 360834[Type text[Type text Question 1...

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Van Dang - 360834 [Type text] [Type text] Question 1: Analysis of the profitability of Nokian Tyres and Continental a) Nokian Tyres: Costs and expenses: 2013 2014 Cost of sales 769,6 819,9 -Selling and marketing expenses 246,5 249,1 -Administration expenses 34,5 36,6 -Other operating expenses 33,2 33,8 Total expenses 1083,8 1139,4 Analytical income statement of Nokian Tyres: 2014 2013 Net sales 1389,1 1521 + Other income of business 3,4 3,9 -Materials & Services -769,6 -819,9 -Administration expenses -34,5 -36,6 -Other operating expenses -279,7 -282,9 EBITDA 308,7 385,5 - Depreciation and amortization 0 0 EBIT (Operating profit) 308,7 385,5 -Taxes on operating profit -77,175 -96,375 NOPAT 231,525 289,125 -/+ Net financial costs/income -47,5 -72,7 -/+ Taxes on net financial costs/income 11,875 18,175 -/+ Net financial costs/income after taxes -35,625 -54,525 NET INCOME 195,9 234,6
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Van Dang - 360834 [Type text] [Type text] Analytical balance sheet of Nokian Tyres: 2014 2013 2014 2013 NET OPERATING ASSETS INVESTED CAPITAL Intangible assets 93.1 94.6 (A). EQUITY 1208.5 1392.8 Tangible assets 502.8 683.8 Investments in associates 0.1 0.1 Long-term liabilities 274.7 185.8 Non-current debtors 19.1 20.1 Current-liabilities 0.6 182.4 (A), NON-CURRENT ASSETS 615.1 798.6 (B), INTEREST- BEARING DEBT 275.3 368.2 Inventories 288.3 322.1 (C), FINANCIAL ASSETS 440.2 424.9 Current debtors 453.5 517.3 (B), CURRENT ASSETS 741.8 839.4 ->(B-C), INTEREST- BEARING NET DEBT -164.9 -56.7 Deffered tax liabilities 45.4 40.1 ->(A+B-C), INVESTED CAPITAL 1043.6 1336.1 Trade payables 265 258.7 Provisions 2.9 3.2 (C), NON-INTEREST- BEARING DEBT 313.3 302 ->(A+B-C), NET OPERATING ASSETS 1043.6 1336 Components of ROIC of Nokian Tyres in 2014: ROIC 2014 = NOPAT 2014 ( INVE STEDCAPITAL 2014 + INVESTED CAPITAL 2012 )/ 2 = 231.53 ( 1043.6 + 1336.1 )/ 2 ≈ 19.5% * ROIC decomposition:
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